This cross-departmental Fund represents a new approach to local investment and will end siloes in Whitehall that make it difficult to take a holistic approach
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© Crown copyright 2021 This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit – government – lic ence/version/3 . Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned. This publication is available at: official – documents . Any enquiries regarding this publication should be sent to us at ISBN 978 – 1 – 911680 – 59 – 8 PU3098

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Foreword Infrastructure improves everyday life. A new bridge or a bus lane makes the journeys of local people easier; town centre improvements help local businesses and cement pride in a place; and upgrades in local heritage sites strengthen the local economy and build civic identity. These are things that people rely on every day in communities up and down the country the infrastructure of everyday life. This is why I created the Levelling Up Fund, which applies to the whole of the UK. It brings together the Department for Transport, the Ministry for Housing, Communities and Local Government and the Treasury to invest £4.8 billion in high -value local infrastructure. In doing so, it removes silos between departments, allowing areas to focus on the highest priority local projects rather than shaping projects to fit into narrowly defined pots of funding. It also embodies the approach of the Green Book Review, focusing on th e needs of individual places and the strategic case for investment. While the Fund is open to every local area, it is especially intended to support investment in places where it can make the biggest difference to everyday life, including ex -industrial are as, deprived towns and coastal communities. It is also designed to help local areas select genuine local priorities for investment by putting local stakeholder support, including the local MP where they want to be involved, at the heart of its mission. Lo cal areas across the UK share similar needs, so the Fund will be delivered in partnership with local areas across England, Scotland, Wales and Northern Ireland. opportunity acros s the UK. Our Plan for Jobs continues to support employment across the UK. Our National Infrastructure Strategy sets out our long -term approach to investment. We are today confirming the UK Infrastructure Bank headquartered in Leeds to invest in public and private projects to drive growth and create green jobs. And Our Plan for Growth published at the Budget sets out how we are bringing these and other elements together. in this Fund: to unite and level up the country . Chancellor of the Exchequer Rt Hon Rishi Sunak MP

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to upgraded local transport and flood defences. Alongside this, inves tment in transport through HS2, the Integrated Rail Plan and Intra -City Transport Settlements, strengthen the spine of connectivity across the country. In the summer, Sir Peter Hendy will publish the Union Connectivity Review, which will focus on enabling a more joined -up United Kingdom than ever before. 1.7 We recognise that levelling up requires a multi -faceted approach, from supercharging our city regions, to supporting our strugg ling towns, to catalysing industrial clusters in the sectors that will drive the future economy the Fund will deliver as part of a broad package of complementary UK -wide interventions, including: The UK Community Renewal Fund , which will provide local a reas across the UK with access to £220 million of additional funding as they prepare for the UK Shared Prosperity Fund due to launch in 2022. As EU structural funds tail off after 2022 -23, the UK Shared Prosperity Fund will succeed them as a programme dist inct from the UKCRF and help to level up and create opportunity across the UK in places most in need in a manner distinct but complementary to the Levelling Up Fund, through investment in skills, enterprise and employment. The funding structure of the Leve lling Up Fund does not set a precedent for the UK Shared Prosperity Fund. The UK Community Ownership Fund , which will empower communities to protect vital community assets in their area by providing funding to take ownership over them, in support of the s ocial wellbeing of local communities. The Plan for Jobs tailored support to help people find work, including through Youth Hubs, Restart, and Kickstart. The Plan for Jobs will support longer term reco very from the unprecedented economic impact of Covid -19. The Freeports programme , establishing national hubs for global trade and investment in every nation of the UK, promoting regeneration and job creation and creating hotbeds for innovation that will in tensify the economic impact of our ports and generate increased economic activity in areas in need of regeneration across the UK. The UK Infrastructure Bank , which will provide financing support to local authority and private sector infrastructure projec ts to help meet UK Government objectives on climate change and regional economic growth. It will also establish an advisory function to help with the development and delivery of projects. The Towns Fund , providing £3.6 billion to drive the economic regener ation of deprived towns and deliver long -term economic and productivity growth, by renewing and reshape town centres and high streets in a way that drives growth, improves user experience, and ensures future sustainability.

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Chapter 2 How the Fund will operate 2.1 The Levelling Up Fund will invest in local infrastructure that has a visible impact on people and their communities. This includes a range of high value local investment priorities, including local transport schemes, urban regeneration projects and cultural assets. The Fund is jointly managed by HM Treasury (HMT), the Ministry of Housing, Communities and Local Government (MHCLG) and the Department for Tran sport (DfT). This cross -departmental Fund represents a new approach to local investment and will end siloes in Whitehall that make it difficult to take a holistic approach to the infrastructure needs of local areas. 2.2 At the Spending Review, the UK Governmen t committed an initial £4 billion for the Levelling Up Fund for England over the next four years (up to 2024 -25) and set aside at least £800 million for Scotland, Wales and Northern Ireland. The UK Government will use the new financial assistance powers i n the UKIM Act to make the Fund available to the whole of the UK, enabling all communities to receive the investment and support they need to recover from the pandemic. As such, up to £4.8 billion until 2024 -25 will be available for the Fund across the UK, with at least £800 million invested in Scotland, Wales and Northern Ireland. 2.3 Where appropriate, MHCLG and DfT will seek advice from the relevant devolved administrations at the shortlisting stage on projects that will be delivered in their geographical ar eas, including on deliverability and alignment with existing provision. Approach in England, Scotland and Wales 2.4 In England, Scotland and Wales, funding will be delivered through local authorities. The Scottish and Welsh Territorial Offices will be consulte d in the assessment of relevant bids. 2.5 This prospectus sets out the approach for the first round of the Fund, which will prioritise bids that can demonstrate investment or begin delivery on the ground in the coming financial year . We will keep the approach in this prospectus under review for future rounds. The Fund is open to all local areas. The amount of funding each area receives will be determined on a competitive basis to ensure value for money. 2.6 Capacity funding will be allocated to local authorities m ost in need of levelling up in England, as identified in the index published alongside the prospectus . It will also be allocated to all local authorities in Scotland and Wales, to help build their relationship with the UK Government for the purposes of the Fund. This capacity funding will help support the relevant local authorities develop high –

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quality bids for the Fund and ensure that investment is targeted where it is needed most. 2.7 The index is based on a combination of metrics including need for economic recovery and growth, need for improved transport connectivity and need for regeneration . 2.8 Further detail on how the Fund will operate from 2022 -23 onwards will be set out later this year. Approach in Northern Ireland 2.9 We are taking a different approach to d elivering the Fund in Northern Ireland, which takes account of the different local government landscape compared to England, Scotland and Wales. Capacity funding will also be made available.

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Chapter 3 Eligibility 3.1 All areas in the UK are able to access the Fund. Specifically , in Great Britain : Unitary authorities (including metropolitan borough councils), London borough councils and district councils in two tier areas in England; and, unitary authorities in Scotland and Wales are eligible to submit bids in line with para 3.2; County councils wi th transport powers , combined authorities, mayoral combined authorities and the Greater London Authority (GLA) are eligible to submit one transport bid; and unitary authorities in Scotland and Wales, and unitary authorities in England with transport powers are able to submit one additional bid which must be for transport . 3.2 We expect Members of Parliament, as democratically -elected representatives of the area, to back one bid that they see as a priority. The number of bids that a local authority in the first categor y can make will relate to the number of MPs in their area. Accordingly, l ocal authorities can submit one bid for every MP whose constituency lie s wholly within their bou ndary. Every local authority can submit at least one bid. ency crosses multiple local authorities, one local authority should take responsibility as the lead bidder and local areas should work together to designate that lead bidder. MHCLG will engage with local government on whether any further guidance would be helpful on who should be 3.3 The Fund will focus investment in projects that require up to £20m of funding. However, there is also scope for inves ting in larger high value transport projects, by exception. Bids above £20m and below £50m will be accepted for transport projects only, such as road schemes, and can be submitted by any bidding local authority. They will be subject to a more detailed busi ness case process and will need to score highly overall . L ocal authorities may wish to consider pooling funding from their bids in order to improve the chance of taking forward a larger transport scheme. 3.4 All bids should have the approval of the relevant au thority responsible for delivering them. For example, transport bids submitted by district councils should have the approval of their relevant transport authority. 3.5 Bidding authorities are encouraged to collaborate with neighbouring authorities on cross boundary schemes and to submit joint proposals across their local areas where appropriate. 3.6 The above bidding authorities should consult a range of local stakeholders across the full geography of a place in developing their proposed investments for

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